To determine the total amount of expenses from all sources that should be closed out and transferred to the Income Summary account, we need to sum up all the given expenses and additional information provided.
1. Initial Expenses from the Trial Balance:
- Salaries Expense: \[tex]$1,200
- Office Supplies Expense: \$[/tex]1,900
- Rent Expense: \[tex]$600
- Telephone Expense: \$[/tex]720
- Taxes Expense: \[tex]$1,420
- Miscellaneous Expense: \$[/tex]905
2. Additional Expense Information:
- Expired insurance premiums for the month: \[tex]$75
- Office supplies used during October: \$[/tex]120
- Salaries due but unpaid: \[tex]$750
- Rent due but unpaid: \$[/tex]150
Now, we will add up all these expenses:
[tex]\[
\begin{align*}
\text{Salaries Expense} &: 1,200 \\
\text{Office Supplies Expense} &: 1,900 \\
\text{Rent Expense} &: 600 \\
\text{Telephone Expense} &: 720 \\
\text{Taxes Expense} &: 1,420 \\
\text{Miscellaneous Expense} &: 905 \\
\text{Expired Insurance Premiums} &: 75 \\
\text{Office Supplies Used} &: 120 \\
\text{Salaries Due but Unpaid} &: 750 \\
\text{Rent Due but Unpaid} &: 150 \\
\end{align*}
\][/tex]
Summing these amounts:
[tex]\[
\begin{align*}
& 1,200 + 1,900 + 600 + 720 + 1,420 + 905 + 75 + 120 + 750 + 150 \\
& = 7,840
\end{align*}
\][/tex]
Therefore, the total amount of expenses from all sources to be closed out and transferred to the Income Summary account is \[tex]$7,840. Hence, the correct answer isn't listed in the provided options. However, based on our computation:
The total amount of expense from all sources is $[/tex]7,840.
